Takahiro Iijima
Mori Hamada & Matsumoto, Tokyo
takahiro.iijima@morihamada.com

Introduction

Japan's Act on Launching of Satellites, etc. and Management of Satellites (Act No 76 of 2016, commonly known as the ‘Space Activities Act’ or ‘Uchū Katsudō Hō’) came into force in November 2018 as the primary domestic legislation governing commercial space activities in Japan. The Act established a permitting system for the launch of satellites and satellite management, a third-party damage compensation system incorporating strict (no-fault) liability, and a government indemnification programme – all designed to implement Japan's obligations under the core United Nations space treaties while ensuring public safety.

Seven years after its enactment, however, the commercial space landscape has transformed dramatically. The rapid influx of new entrants, advances in launch vehicle technology, and the emergence of novel space transportation concepts – including reusable rockets, suborbital vehicles, and rocket-only test launches – have outpaced the existing legal framework. The Space Policy Committee's Subcommittee on the Review of the Space Activities Act established the Working Group on the Amendment of the Space Activities Act, which published its Final Report on 9 December 2025. This report formed the basis for the formal amendment bill. On 27 March 2026, the bill was approved by Cabinet Decision and submitted to the Diet. It was enacted on 11 June 2026 and promulgated on 17 June 2026. The amendments to the Space Activities Act will come into force within one year of promulgation.

This article outlines the principal features of the proposed amendments and considers their significance for domestic and international space industry stakeholders.

Background: why reform was necessary

The existing Space Activities Act was designed around a specific operational model: the launch of a rocket carrying a satellite for insertion into Earth orbit or beyond. This satellite-centric regulatory architecture made sense when Japan's space launch activities were predominantly conducted by the Japan Aerospace Exploration Agency (JAXA) using government-developed launch vehicles. As launch operations were transferred to private operators, the Act provided the necessary supervisory framework to fulfil Japan's obligations under Article VI of the Outer Space Treaty.

However, recent developments have exposed significant regulatory gaps. Private companies are now conducting test launches of orbital-class rockets carrying only dummy payloads or no payload at all – activities that fall outside the current statutory definition of a ‘launch of Satellites, etc.’. Objects being placed in orbit have diversified to include space memorials, monuments, and research capsules that do not clearly qualify as ‘satellites’ under the existing definition. Meanwhile, reusable rocket stages, suborbital vehicles and re-entry vehicles present operational profiles that the current Act was never designed to address.

The Act itself anticipated this need for adaptation: Article 5 of its Supplementary Provisions required the government to review the Act's implementation five years after its entry into force. This statutory review provided the impetus for the current reform effort.

Key features of the amendment

Renaming and conceptual reorientation

Perhaps the most symbolically significant change is the renaming of the Act from ‘Act on Launching of Satellites, etc. and Management of Satellites’ to the ‘Act on Launching of Space Rockets and Management of Specified Satellites’ (Uchū Roketto no Uchiage oyobi Tokutei Jinkō Eisei no Kanri ni kansuru Hōritsu). This reflects the fundamental shift in regulatory philosophy: from a regime centred on satellites to one focused on the launch vehicle – the space rocket – as the primary object of regulation.

It should be noted that there is also the so-called Satellite Remote Sensing Act (‘Act on the Proper Handling of Satellite Remote Sensing Records’) among the laws related to space activities in Japan; however, it is not included in the scope of the proposed amendments.

Expanded definitions

The amendments introduce several new or revised definitions:

• Space Rocket (Uchū Roketto): Defined as a rocket launched from Earth that possesses sufficient thrust to reach Earth orbit or beyond. This new concept encompasses all orbital-class launch vehicles, regardless of whether they carry a satellite payload.
• Satellites, etc. (Jinkō Eisei-tō): The definition is broadened to include not only traditional artificial satellites but also other artificial objects to be placed in orbit or beyond, such as monuments and space memorial capsules.
• Specified Satellite (Tokutei Jinkō Eisei): A new category for controllable satellites (that is, those whose position, attitude and status can be monitored and controlled) which remain subject to the satellite management permit.
• Pre-Loading Satellites, etc. (Tōsaimae Jinkō Eisei-tō): Satellites and other artificial objects (excluding Specified Satellites) prior to their loading onto a space rocket, for purposes of the new conformity certification system.

Expansion of the launch permitting system

Under the current Act, only launches involving the separation of a satellite require a permit. The amendments extend the permitting requirement to all launches of space rockets, including rocket-only test flights and launches carrying only dummy payloads. This expansion ensures regulatory coverage for the full spectrum of orbital-class rocket launches now being conducted by private operators in their development and demonstration programmes.

The licensing criteria are also updated to reflect the new rocket-centric framework, including revised requirements for rocket design verification (replacing the former Type Certification with per-rocket Design Confirmation and abolishing the Foreign Certification system) and facility compliance certification.

Pre-loading conformity certification

A new Pre-Loading Conformity Certification system is established for satellites and other artificial objects (excluding Specified Satellites) to be loaded onto space rockets. This system requires that the structure of such objects be certified as conforming to standards designed to prevent harmful contamination of the space environment before they are loaded onto a rocket – addressing concerns about the growing diversity of objects being placed in orbit.

Extension of the third-party damage compensation system

The existing third-party damage compensation framework – comprising strict (no-fault) liability for the launch operator, channelling of liability, mandatory insurance requirements and government indemnification – is extended to cover the new categories of launch activity.

Specifically, the amendments expand the scope of persons bearing strict liability for Rocket Fall Damages to include operators of space rockets (not only operators launching satellites). In addition, where non-satellite artificial objects (such as monuments or memorial capsules) cause damage upon falling to Earth, strict liability is imposed on specified persons, including those who commissioned the loading of such objects onto the rocket.

Importantly, however, this enhanced framework still draws a clear distinction between Rocket Fall Damages and Satellite Fall Damages. While the full suite of protective measures – mandatory insurance, channelling of liability and government indemnification – applies to Rocket Fall Damages (including damage caused by objects that have not been normally separated from the rocket), Satellite Fall Damages caused by objects that have been normally separated and placed in orbit is subject only to strict (no-fault) liability. Neither mandatory insurance obligations nor the government indemnification programme extends to Satellite Fall Damages, on the basis that the risk of objects falling from orbit – where most components burn up during atmospheric re-entry – is not equivalent to the risks associated with the launch phase. This distinction, which existed under the original Act for Satellite Fall Damages, is maintained and extended to the new categories of non-satellite artificial objects under the amended framework.

Amendments to related legislation

The reform package includes amendments to three other statutes:

• Basic Space Law: The scope of basic policy measures is expanded to include the promotion of research and development of equipment and technologies necessary for the development of rockets used in space activities (not limited to satellite launches) and ‘ensuring public safety’ in space activities is explicitly added.
• Cabinet Office Establishment Act: The mandate of the Space Policy Committee is broadened to cover the safety of space rocket launches generally, and to address important matters related to the preservation of the space environment under the amended Act.
• Space Resources Act: Consequential amendments are made to align the cross-references and terminology in the Space Resources Act with the revised Space Activities Act.

Issues deferred for further consideration

Several important topics were identified in the Final Report as requiring further deliberation before legislative action can be taken. The following are among the key examples:

• Re-entry regime: While the need for a re-entry licensing system was acknowledged – particularly in light of commercial re-entry vehicle plans for the late 2020s – the Working Group concluded that the introduction of such a regime should await the accumulation of further operational experience and knowledge.
• Suborbital flights: The regulatory treatment of winged suborbital vehicles and suborbital rockets remains under study, including questions about the appropriate third-party liability framework. In the interim, recommended safety practices will be developed as guidance.
• Human spaceflight: While the current Act does not prohibit the launch of crewed vehicles, the Working Group recognised the need for careful, phased development of safety standards and institutional frameworks for commercial human spaceflight, in coordination with private-sector stakeholders.
• Extraterritorial jurisdiction: The regulation of launches conducted by Japanese nationals or entities outside Japan's territory was identified as a matter requiring further analysis.

Conclusion and outlook

Japan's amendment of its Space Activities Act represents a significant modernisation of the country's space regulatory framework. By shifting from a satellite-centric to a rocket-centric regulatory paradigm, the reforms lay the institutional groundwork for the diverse space transportation activities – including reusable rockets, orbital test flights and eventually suborbital and crewed missions – that are expected to define the next phase of commercial space development.

The amendment bill was enacted on 11 June 2026 and promulgated on 17 June. The amendments to the Space Activities Act and the Cabinet Office Establishment Act will come into force within one year of promulgation – meaning the new regime should be operational by June 2027 at the latest. The amendments to the Basic Space Law took effect on the date of promulgation. Notably, the legislation also includes a review clause requiring the government to examine the amended Act's implementation approximately three years after its entry into force, ensuring continued adaptation to the rapidly evolving space sector.

For international space industry participants, the amendments signal Japan's commitment to maintaining a competitive and transparent regulatory environment. The expanded licensing framework, coupled with the robust third-party liability and government indemnification system, provides a clear legal foundation for private-sector space activities conducted from Japanese territory. As Japan positions itself as a space transportation hub in the Asia-Pacific region, these reforms will be closely watched by industry stakeholders and regulators worldwide.